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Strategies & Market Trends : The Art of Investing
PICK 51.06+2.3%Dec 22 4:00 PM EST

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To: y2kate who wrote (8514)4/20/2024 8:05:11 PM
From: Sun Tzu1 Recommendation

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y2kate

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Everyone's time frame should be the shortest interval for which they can win. As you have noticed, you cannot hold on to your gains in your trading window. This is a clear sign that you are competing against people who out gun you.

I do not have a preset timeframe, but most of my positions are held for ~6 weeks. Some times they go on for up to 6 months, but that is rare.

For example, during the past 3-4 weeks I am up 46% on my LABD position (the entry position is up 54%, last and 3rd tranche is up 15%). LABD is 7% of my portfolio. Over this same period, my NVDA short position yielded 34% gains and before I reduced it on Friday, it was 23% of my portfolio. Overall, I am up 20% during this period while holding an average of 40% cash.

This is from about a year ago


It is not that the pros are not interested in long-term gains. It's that (for the most parts) they can make more money from short-term trades than long term.

The other reason is that most professionals have to show short term results. Warren Buffett is an exception because his investors know his time frame. Everybody else has to show quarterly results.
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